LedgerX has received temporary approval from the US Commodities Futures Trading Commission to act as a swap execution facility.
The bitcoin options startup applied for licensure last year and has received backing from Lightspeed Venture Partners and Google Ventures.
CEO Paul Chou said that despite the temporary approval, the exchange isn’t set to launch until further licensure is acquired.
He said of the temporary approval:
According to a letter sent to LedgerX by the CFTC, the agency will conduct further inquiries into the company as part of its approval process.
“As a next step, the Commission will review LedgerX’s SEF Application to assess whether it is fully compliant with the requirements of the CEA and the Commission’s regulations applicable to SEFs,” the agency wrote. “During such assessment, the Commission may request from LedgerX additional information in order to make a determination whether to issue a final order of registration.”
The leader in news and information on cryptocurrency, digital assets and the future of money, CoinDesk is a media outlet that strives for the highest journalistic standards and abides by a strict set of editorial policies. CoinDesk is an independent operating subsidiary of Digital Currency Group, which invests in cryptocurrencies and blockchain startups.